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Thursday, December 6, 2018

What is my cold cash?

I received an email today from a reader asking, totally intrigue, what I mean by "cold cash" in my investment portfolio:

New to my blog? Maybe you didn't know, but cash has it own favor, taste, and its cold or hot depending of the situation. And inside my portfolio, cash is absolutely COLD because I am hot. Cold cash is simply what I have as saving, and I don't have much as you can see. I basically live paycheck per paycheck and I invest all that I can straight on my TSX, and my stocks are my babies.

Its the end of the year 2018 and its quite busy at work. And I feel more and more tired as days go by. Its now starting to get dark at 4 pm if not earlier and it seem to be effecting my level of energy. And I just cannot be that way, especially now when I have so much to think about. I sleep so well in the morning like a little angel, but I have to get up and go to work... And I also have to figure out what do I sell before 2019 hit me in the face, among others. But one thing for sure, the TSX took a good hit today, going all the way down UNDER the 15 000 points - one more time. Like this is the new reality for investors, the environment is all mess up and the stock market is shaking because we had been braved enough to arrest a rich Chinese woman and send her straight to her hell and pay for her crimes in... the USA. In China, there's no social justice, but justice exist in Canada. And this is all of what China government need to understand.

In reaction, my non-registered portfolio closed today session at a $125 811.01 my TFSA portfolio at $74 259.84. My margin usage is at $66 177.58. I am looking forward to sell for $20 000 worth of stocks inside my TFSA to pay by margin. In 2019, I will sell my PPL shares. Following what, I will only have left $19 000 in margin debt. And I plan to pay it off within the year 2019. That's the plan. A $19 000 can be paid withing a year.

8 comments:

But if it wasn’t for her margin account she would not have a net worth of over $200k...and I don’t think she paid any where close to $200k in interest...I think DG is making sound decisions when it comes to her investments.

Ok MD, explain to me why I am nuts. Whats so hard about figuring out what she made. Cost of stocks, cost of trades, cost of margin???? Yea sure she gets to write off interest if in non reg acct. Please explain??

It's fine to invest in a margin in a bull market, which we were in.It's just risky because it will also magnify the loses on the downturn.Personally, I use options instead of margin to create leverage with a defined risk and infrequently use margin even though I have lots of it. it's not the interest that should worry anyone, although it enriches TD at our expense, it's the downside risk.

Yes, I said her net worth is > $200k......I agree Frederic, even if DG investment $100k of her own money along the way(which I doubt) she is still ahead by over $100k.....in DG case, currently I think her capital gains out weight the interest accrued on her margin account......it’s the market down side risk that is the issue.....so she is doing the right thing by taking some profits from her capital gain stocks to pay down her margin account!!

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About Me

I am a French Canadian, New Brunswicker. On August 5th, 2009, I reach my goal, which was to have 50 000$ in investment assets. My larger goal is to reach financial freedom and, if not retired early, at least live happily with my money and be able to reach my objectives. It's all have to begin with a first 50 000$. My email, if you like to say hello: myfirst50000 (at) yahoo.ca